captning sponsored by wpbt >> paul: bank ofmerica out with aombshell. ceo kelewis is retiring! he'll leave at the end of th year after spendg months in the t seat after buying meill lynch. >> susie: a al dissolved. peke pulls the plug on its deal to buy satu, so general moto says it will shutter saturn for good. >> paul: it's a thd quarter to remeer. sam stovall ins us as wall stet wraps one of its best quarters in years. he the chief investment strategist at standard a poor's. >> susie: then, dot-com an beyond. the number of possibleeb addresses willoon explode. we tk to the man in charge of keeping tabs on wheryou can

surf in berspace >> paul: i'm paul kaas. susie: and i'm susie gharib this is "nightlyusiness report" r wednesday, september 30. "nigly business report" is made possible by:

this program was madpossible by ctributions to your pbs station fr viewers like you. thank you. 7//& >> susie: od evening everyone. ken lewis is stepping downs c.e.o. of bankf america. a surprise announcement lat today lewis told the board o e banking giant he'll be retire at the end of t year. he's leaving after a tenur rked and marred by the bank' rchase of merrill lynch january 1. lewis and b.o.a. havcome under fire sce it was learned merrill gave billions ofollars in bonus to employees while getting bailout money fromhe government. lewis says he's confent in leaving now, becse b.o.a. is ready meet the challenges of a global economy. the bank says lewiwas a key ayer in establishing it as a global fincial franchise and now itill look for a suessor.

joining now on the phone for the test analysis ofewis' retirement from b.a. is dick bo, bank analyst at rochedale securities. her heo. >> susie why now? why the timing of today's departure? >> i think there areust too many govnmental actions being brght against the company. i think that new york city and ohio are both sng the company. you've got the s.e. c., congress, and federal judg alwanting to do something against the compy. so that's the reason why now. >> susie: do y think that the obama administration had anything to do with lewis' departure? >> well, to the gree that they control thes. e.c., the answer wou be yes. but i'm noture it's at the top of their anda. >> susie: all right. who will be lewis' replacent? could u see its being from the outse or somebody inside the bank? >> well, theo people i think would be in top positiowould be brian moynihan, who is the head othe retail bank, and thperson that i like the

best is barba desoures, >> so you thinkt will be an inder? >> i bieve. so it would be against the traditionand culture of this compy to take one from the outside. >> susie: what aut sally kraucheck who just got big job over at bk of america? >> he's notn the running because she'sot a bank of america rson and sheas no history at the cpany. >> susiewhat do you think will be the null one job of the new c.e.o.? >> you've go to contr the loan losses that are in the company. i think that the acquisitions of merrill and countrywide, despite what pple think, were huge successes forthe coany, theyenefited the bank. the area wherehe bank h serious probms are in t loan losses, that's wher the eatest atntion has to be paid. >> susie: bank of arica ock is up in afterours ading. would you a buyer of the tok at these levels, around

$17? >> y, i think the potential of the stock is ermous given that the fact that its ln lossesver the next few year should contract from65 billion a year do to about $10 billion a ar and that will cause earnings to sr. >> susie: all right, dick, thank yofor coming on the prram. >> thank you >> susie: my guest tonight, dick boef. >> paul: it's the end of t road for gm's polar saturn. in a surprise announcent late today geral motors said penske automotive scrapped talkto buy the saturnrand. one the world's largest c dealer networks nske was concerned it might not be ab to get vehicles after its manufacturing contract with ran out. gm and penske habeen working on a deal since june. gm noways it will phase out saturn andts distribution network of 350 alerships. we'll learmore about this tomorrow, as we talk witgm's global marketi direcr michael di-giovanni abt the automaker'september sales mbers.

it was a rough sta for wall street tod as investors fosed on a weak private reing on employment and a survey showi a contraction of mid-west manufacturing activy. by 10:00 a.mthe dow had tumbled 130 ints with the nasdaq off 28 points. ca-laden investors bought into the weakne lifting the dow to 13 pnt gain by 1:00 p.m. with the nasdaq up 11 points. energy and tecstocks led the comeback, helping thmarket closwell above the day's lowest levels.

>> susie: it's one of th biggest initial public offings thisear: late today casino operatorynn resorts raised more than a billion and a lf dolls in an offering for its casino and resort in mac. the stock begins tding in hong kongn thursday. september has been busfor new blic offerings. after a drought in t i.p.o. market d to the recession. so is this the begning of a gusher of newly public companies? sct gurvey reports. >> reporte with the market rally, it was ly a matter of time before the green oots of itial public offerings sprouted. after ven months of a virtual shutown in the ipo market, the number of new ises has been rising, ahough it remains ll below last year's levels.

last week, a123 systems went public on the nasd. thisompany makes batteries for eltric cars, an industry targeted for fundi in the economictimulus package. investors havelready bid its stock price up by 50 but david menlow of ipo financial network worries ey are being too eculative. >> t big trap for investors are gonna behose companies that come into thearketplace as a result of a stimulus spending tt is coming around the cornernext week, next month, in the next quaer, what have you these are mpanies that will not immediately benefit from whever money is being thrown around butt will be the perception that evyone will getrapped into. >> reporter: in fact marke performance for veral new issuesas been poor, with pres staying around their first trade. two real estate instment trus had rocky roads to market this month. two others were nceled. wiiam smith of renaissance capital says the curre market reminds m of the 1970s.

>> it was a very trolesome period. therwas no ipos during that period. right after, when, in the mito later seventies, the i market did comeack. however it took a ng time to do tha it was more in dbs and drabs rath than a big bang. and so we're not expting any kind of big bang anytime soon. >> reporter:he experts warn vestors to pay particular attention to each specic offering. this is not, ty say, a climate whe a rising stock market will lift every ipo. >> obviously the big queion how are you ing to find the ght deal? it's going to be really as simple as investors doing thr homework and not relying o othepeople to say hey this is a great stock you goto do it. >> reporter: there is still lot of money sitng on the silines and many private equity firms he invested in compans they eventually plan to take public. that means next ye may be the ye the ipo market returns to some kind of norma scott gurvey, "nightlyusiness report",ew york.

>> susie: thinternet is a lile more global tonight. the commerceepartment today agreed to relax its controover the non-prof company that sets the rules for web site domn names. in theory, it means the inteet will n better reflect its global footprint. in practice, it mes stay tuned for a ton of new placeto surf, which may be good or bad ne. darren gersh explain >> reporter: just when y think you're a mter of the internet, they throw in something ne >> a dot sport, you ow or a dot berlin or a t new york city. >> reporter: thas rod beckstrom,eo of the internet corporatn for assigned names and numbers, icann for sho. icann is like thinternet's

postmast general, making sure evy website has a unique address. and the number of ssible addressewill explode next year as icann expands t neighborhood beyond top-leve domain nes like dot com and dot org. >> when icann wacreated by the us department of comrce 11 years ago,he mandate, right there in the top was "you ne to create competion in this markspace for names by creating new top-level domai." and in general people like t have options andhoice and it leadto innovation. >> reporr: so how much invation and choice will people have that they di't have before? >> what they didn't have befe is fstly, they had to have latinate characters,e think as enish characters all the way rough the dot com or dot net that is going tohange. >> reporter: that mes a website in cna will be able to write its domain name usg chinese characrs. and for companies: instead o say, coke.com, u might simply uscoke. but whe icann sees choice, many businesses see added st. after thexpansion, companies will have to registehundreds

of new domn names to protect themselv fm cybersquatters, the people who register valuable online names ansell them off to the highest bidds. steve delbianco represen e- commerce giants like ebay an verisign. at aecent congressional hearing, he argued new dain nas won't lead to more innovation. >> dot food won'create a single n restaurant. it won't creata new webpage. it won't create new restaura reviews ornline reservation sites for restaurants. they'valready got those. >> reporter: beckstrom saywhen dot com was cread, critics said t same thing. >> someone said we are gng to create thidot com, but no one isoing to use it. why is there any rean to have dot co we don't need it and threality is that dot food maor may not make it. dot new york city may or m not make it. t why not let the free marke decide. reporter: this is an important day for icann:he u.s. governmenhas agreed to relax its controover the non- profit company, maki it more internatnal. >> over 0 million new users

will come to the internet is year. 95% of those are outsi the united stateof america. sohe internet is a truly globalhenomenon and we need the buy in of the counity and akeholders worldwide. they should be governing thi coaborative body, not just one country. >> reporter: online expes say domain nam matter less now, since mosteople find sites throh search engines. but annalisa rogs thinks dot greewill be different. she's setting up a non-prot registry that ll help people find companiesnd programs that help the envirment. >> i think it's a big dealor the environmenand for the plan as a whole. the movement is happing and dot green ves it a cnce to happen onle. >> reporter:ou can see the complete inteview with ica's robeckstrom at nightly busiss report on pbs.org or pbs.medior pbs.interesting or pbs.wah or just plain at pbs. just kiddingat least for now. darren ger, "nightly business report,"ashington. >> pl: now, let's take a look

at some stocks in thnews tonight.

tonight marks the end ofhe third quarter wall street and september to remember. joining us for a look athe quarter and whe we could be heed next is sam svall chief investnt strategist at andard and poor's. sam, good to see you again. >> thanks,aul, good to talk to you. >>aul: what a bullish quarter it was. look at these gains. let'have a look at some of these averages, they are really up. 15% and betr. what do you make o this quarter, why all the bullhness? >> well, pl, certain it was a good quarter. itas the fifth best third quarter sie 1929 for the s&p 50 and i think certainly it's because we have investors w are hoping that the third

quarter gdp will come in stnger than they expected because of a weakerear ove ar changes in energy ices ana weakening dollar that that probablyould sigl an imprement that third quarr earnings results. >> pau what sectors led the market higher in the quarter >> wel with this ki of performanc i think you'd priced if it we not the cyical sectors, and yes they were the lders. industrials, finaials and terial stocks all led the way higher by about 19 or so. >> paul: the weast of the sector was? >> well, basically a risg de lifts all boats, so these three were higher, but they reefinitely the defenses of consumer staples, healt care and -- >>aul: looking ahea to the fourth quarter, can we expec e gains to continue, sam? >> i think t gains wl coinue, but probablynot at the same magnitu.

october, whi issually a relatively flat mont i tnk could end up bein a little better than expected because i is the first october since the new bull market, and traditionay the first month following the d of a bear market doe relately well. if enomic growth is likely to continue to be workingts way slowly higher, then think that could helppull prices with them paul: what times of stos do you ink will lead us higher shoul we gohat way? again, i thi that it will probably be the cyclicalareas this ca consumer discretionary, probably industrials d thnology stocks cld do fairly well. paul: what sectorsould yoabsolute avoid over the next three mons? >> againi would tend tosay at if the market isn an upper trend, a trend is your friend is the old sang, traditionally thdefensive ars are the ones that l. they are good dividd yields, but healthare, consumer staples d utilities probabl will be under perfoers on a

price basis. >> paul: we've had a lot of analysts sayinthat the market has gten ahead of itself wheyou compare to it the impvement in the economy. what are your thought >> well, paul i thinkhat tradionally happens is tt investors underestime the streth of a newull market. there's a lot cash on the sidelines, a lot of pple ve been waitingor a correction in the stock market thateally has not materialized and if historys any guide, and certainly t gospel, we could he 1200 for the s&p 500 by the summer of next year. >> paul: where do you see t standard andoors 50at thele of this year? >> i thinkertainly higher than where were right now, probably approaching the 1100 vel. >> paul: 1100 vel. fair enoug any last thoughts for o viewer as wend the third and start the fourth quarter? >> well, paul, certainli would ju say that we are oking for an economi recovery probablythe word recovery wl not be spelled with the letter , but probablyith an engated u.

so iould say be optimistic but not over so. >> paul: sam, i want to tha u very much for sharing your views wi us once again. >> mypleasure as always, paul. >> paul: my gues standard and po's sam stovall. susie: tomorrow fed chairma ben bernanke tesfies on capitol ll about giving the fed more power to oversee nks. >> susieonly 85 more shopping days 'til christmas and l-mart is using a of them to attract bargain hunters. the retailer is pricinmore than 100 toys at ten dollars each. they include classic board games, popular dollsnd action figures. some items are mked down more th 50%. la year, wal-mart offered just ten to at ten dollars. the prices are aimed at recession-minded shoers keeping a tight rein othe purse stringthis year. >> pau chevron has a new chrman and ceo and he'll take the res at the end of the year. john watson has en with the nation's sond largest oil

mpany since 1980, most recently as vice chairman. current ceo davio'reilly is retiring after 41 years withhe company. euquu >> susie: here's aook at

what's hapning tomorrow. september auto sales a released along with thaugust reports on pernal income and cotruction spending. in the money filtonight why the sidelines aren't t best place to be if y're planning for tirement. here's charles bennett shs vice presint and weah manager at ensky and >> why safe n't always safe it was mark twain who said thate wamore concerned about the return of his money thanhe return ohis money. in this ti of uncertainty, it is this very reasowhy investors have so ch cash on the silines these days. and who can blame th after the year we all just lived throu in the investmenmarkets? we are in the midst of a glol slowdown the likes owhich we haven't se in decades and while ma see glimmers of light at the endf the tunnel, some e sustained darkness for som time. cash holdings while gerally safe from a principal prottion standpoint are far fm safe when it comes to mting future spending goa primarily due to time and inflation.

ti because you are probably going to live longerhan you think, in fact there's one in ur chance that you or your spouse will li until age 95. inflation acts athe hidden tax always wking to erode ones buying power with vastating resultover long peods of time. the soluti? ing an owner of a diversifie basket of business, affords one the opportuny to share in thprofits of those businesses. and while indidual businesses ll fail, the overall basket tends to do well or time. its also important trealize that itsot necessarily an all or nothing game. studies have shownhat while huma tend to gravitate to an all-in or alout approach, having some blend of cas stocks and bonds imost appropriate fothe vast jority of investors. n't let the powerful feeling of fear and greed clouyour judgment and derail yourong term plan. i'm charles bennett sachs. >> paul: recapping today market action stks slip as wall seet wraps a winning quarter. the dolost almost 30 points and the nasdaq fell 1-1/ points. to learn more about the sties in tonight'sroadcast, to watch

our streaming video and toake rt in our daily blog, go to "night business report" on pbs.org. you can also eil us at nbr@pbs.g. that'snightly business report" for wednesday, septemb 30. i'm susie ghib. goodnight evyone. and good nht to you paul. odnight susie. i'paul kangas wishing all of you the best of gooduys. "nightly businesreport" is ma possible by:

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